Occupancy rate formula
Occupancy rate = Room nights sold ÷ Room nights available × 100
Worked example
A 40-room hotel over a 30-day month has 1,200 room nights available (40 × 30). It sells 870 room nights.
| Figure | Value |
|---|---|
| Room nights available | 1,200 |
| Room nights sold | 870 |
| Occupancy rate | 870 ÷ 1,200 × 100 = 72.5% |
Room occupancy vs bed occupancy
A hostel with a 6-bed dorm that sells 4 beds has sold "one room" but only two thirds of its beds. Measuring by room would show the dorm as full. Properties that sell individual beds usually track occupancy per bed so that empty bunks are visible.
Common mistakes
- Mixing definitions — decide whether out-of-order rooms and complimentary stays count, and keep the rule the same every period.
- Reading occupancy alone — high occupancy at a low rate can earn less than moderate occupancy at a better rate; compare with ADR and RevPAR.
- Looking only backwards — occupancy on the books for future dates, and how fast it is building, tells you more about pricing decisions than last month's figure.
How bedsKey measures occupancy
bedsKey reports occupancy % with ADR, RevPAR and room nights by day, week, month or custom range, and shows occupancy on the books ahead in the forecast and pickup report, with pickup over the last 1, 7 or 30 days. Inventory is held at room level and bed level in the same calendar, so hostels and hotels use the same system. Occupancy can also drive price: bedsKey's auto-yield rules move the rate as the property fills, always inside a floor and a ceiling you set.